Arif Quadri, managing director and CEO of United Commercial Bank (UCB), formally resigned from his post today.

In his place, Syed Faridul Islam, additional managing director of the private commercial bank, was given the responsibility of managing director (in charge).

Officials of the bank said that Quadri is now staying in Canada.

The board of directors of the bank accepted the resignation letter in a meeting today, UCB Chairman Sharif Zahir told The Daily Star.

In December 2021, Quadri was appointed as managing director and CEO of UCB.

He did not respond to the phone call on Wednesday. A day later, he told The Daily Star that he was present at his office till August 14.

"I proceeded on leave from August 15 duly approved by the bank board and the Bangladesh Bank."

On August 28, the central bank dissolved the bank's 18-member board, which was heavily dominated by the family of former land minister Saifuzzaman Chowdhury Javed. The previous board included Javed's sister Roxana Zaman Chaudhury, and relatives Anisuzzaman Chowdhury and Asifuzzaman Chowdhury.

The central bank then constituted a five-member board for the bank, comprising two shareholder directors and three independent directors.

Sharif Zahir, chairman of National Finance, was made a shareholder director. Zahir is also the managing director of Ananta Group and a former vice-chairman of UCB.

Bangladesh Bank (BB) is not blocking or interfering with the accounts of any businesses, regardless of their political affiliations, said BB Governor Ahsan H Mansur. 

"We are not affecting any industry. Every sector is allowed to operate freely, without interference or blocking of funds," Mansur said during a roundtable discussion on the current business challenges and the way forward organised by The Daily Star at its office today. 

Mansur also emphasised that freezing bank accounts does not help anyone.

Top entrepreneurs and chief executives from multiple sectors attended the event. The Daily Star Editor Mahfuz Anam moderated the discussion.

Syed Nasim Manzur, managing director of Apex Footwear Ltd, a leading exporter, highlighted the need for ensuring the safety and security of industries in key industrial zones such as Chattogram, Ashulia, Narayanganj, Gazipur, and Cumilla.

Referring to recent arson attacks on Gazi Tyres Ltd and other businesses, Manzur remarked, "These are national assets." 

He also criticised the government's lack of response to the urgency of the situation.

In response to concerns about the attack on the Gazi Tyres factory, Mansur expressed regret over the incident. "The destruction of the Gazi tyre factory is unfortunate. We should have protected them," he said.

Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, highlighted the importance of maintaining business operations. 

"Reconciliation is crucial. Unity among industries is essential," he added.

It's heartening to see the government acknowledge the importance of having an independent central bank. Reportedly, the authorities are set to amend the Bangladesh Bank Order, 1972 to supposedly align it with global best practices and give it more autonomy. The development comes at a time when the economy is going through one of the worst downturns in recent memory, with inflation continuing to break records. As experts have pointed out, failed government policies have been a major factor for the runaway inflation and other economic problems we are currently experiencing. And the role of government-controlled Bangladesh Bank in this debacle is particularly notable.

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It is reasonable to assume that many of our problems could have been avoided or better addressed if we had an independent and courageous central bank. The government-imposed interest-rate caps on both the lending and deposit rates—at 9 and 6 percent—is a perfect example of this. Perhaps a more independent central bank would have realised—and indeed listened to experts—that this was a flawed policy that would only end up fuelling inflation. The decision to artificially inflate the value of the taka was another disaster that, too, could have been avoided.

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The concept of a public institution eludes our central bank

Even before the recent economic crisis began, the unchecked "looting" of our banking sector—under political patronage—had damaged our economy beyond comprehension. Those cracks are widening today as the government, including the central bank, fails to curb default loans with the policies for defaulters continuing to be relaxed. The government's decision to provide continuous loan rescheduling facilities and interest rate waivers to loan defaulters has not been beneficial whatsoever. Therefore, we hope the Bangladesh Bank is given autonomy to pursue stricter policies with regard to wilful defaulters, without political interventions.

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In its technical assistance report regarding the Bangladesh Bank, the IMF said that the bank "order needs to be substantially amended so that price stability is the overriding objective of the new monetary policy regime, and governance arrangements are aligned accordingly." We cannot agree more. What's concerning, however, is that a provision of the order called for establishing a council comprising finance and commerce ministers, the bank governor, and others. This will ultimately constrain the bank's actions in times of pressure.

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Therefore, while the amendment initiative may sound good, its success in terms of making prudent economic decisions will be determined by the degree of autonomy ultimately granted to the central bank. Previously, despite talks of providing it with autonomy, we have seen the government do the exact opposite. Hence, we hope the amendment is not simply an eyewash amid pressure for reforms. It must be able to address longstanding concerns about the bank's function and mandate. An expert-driven Bangladesh Bank that protects the nation's best interests is the need of the hour.